fbpx
TrustedCompanyReviews receives commissions from affiliate partners that it reviews. The reviews, rankings, and product information of affiliates constitute advertising.

x

How We Calculate Rating

Ratings on Trusted Company Reviews are given by experts in that particular industry. Our experts monitor the brand closely and then give the brand a rating which you can trust.

Our rating score is based on 10 Points and a Five-Star shown alongside the score to easily understand the rating.

We frequently update the ratings of all brands so that you don’t choose a brand by their old  ratings.

Ally Auto Loan and Refinance Review

Home » Brands » Ally Auto Loan and Refinance Review
9.0

Table of Contents

Ally Auto Loan Review & Refinance Options

Most people need some help buying a car, which is why auto lending is such a big business. Lenders like Ally offer funding to buy a new or used car, refinance an existing loan, or buy out a lease nearing the end of its term. Ally’s online loan application and management systems make it easy to complete the process, and the bank works with a range of credit scores, depending on the loan and individual borrower. The company is a top contender in our overview of the best auto refinance loan providers.

Stacks of cash, car keys, and a calculator representing financial planning for an Ally auto loan review.

Pros

  • No hard credit check to prequalify

  • Works with a range of credit scores

  • Applicants see real loan payments and terms after prequalifying

  • Competitive rates

Cons

  • Not available in all 50 states

  • Many borrowers complain about funding times

  • Does not provide any rates or other details before prequalification

About Ally Bank

Ally was once known as GMAC, General Motors’ financing division. It rebranded as Ally in 2010 and continues offering vehicle financing to individuals and dealers. The bank claimed more than half a billion dollars in 2023, making it one of the country’s largest auto finance companies.

That size gives it the ability to offer a wide range of financial products, including leasing services, lease buyouts, new and used financing, and refinancing. Ally also operates as a traditional bank, offering checking and savings accounts and credit cards.

Ally’s vehicle financing and refinancing are popular options for borrowers because they come with a range of benefits, including a 100% online application process and prequalification in minutes. The bank also states that borrowers save an average of $158 per month, or $18,96 per year. Some vehicles and borrowers may also be eligible for vehicle protection plans or extended warranty services.

Features and Benefits

Ally is a huge bank with considerable resources, giving it the ability to offer a range of benefits its competitors can’t match. While that includes a wide range of loan products, it also includes vehicle protection plans, financial advice and information, and standard banking services.

  • Offers checking, savings, and credit card services in addition to loans
  • The bank says its customers save more than $150 per month on average
  • Leasing and lease buyouts are available
  • Some find lower monthly payments with Ally
  • Prequalification does not require a hard credit check
  • Borrowers can add or remove a co-borrower during the application process
  • Terms of up to 75 months are available, depending on the loan and borrower
  • Auto refinance process and loan application happen completely online

Ally Bank Costs and Fees

Ally does not charge fees that many of its rivals require. That includes no application or documentation fees, and borrowers can pay off their loans early with no prepayment penalties. That said, some borrowers using third-party payment processing services may see fees, though not from Ally itself. It’s also important to note that interest is not considered a fee, and Ally does charge late fees, which it says can add $25 to $50 on top of the monthly payment amount.

Ally Auto Loan Reviews: Editorial Rating

Trusted Company Reviews Rating Score for Ally: 9.0

We rated Ally with a strong nine out of ten score because of its zero-fee loans and solid customer service. The bank also has a fast and easy application process, and it works with a range of credit scores, making it more accessible to more borrowers. That said, Ally’s rates aren’t as competitive as others, and its add-ons, while generous, fall short of the top competitors’.

There’s a lot to like about Ally’s rates and terms, but that doesn’t mean it’s the best choice for every borrower. Even knowing Ally’s prices, it’s important to shop around to make sure that you’re not missing out on an opportunity with a better lender for your needs. The same is true for refinancing a car with Ally, where it’s important to explore all your options.

Lowest Available APR Loan Length Terms Length Range Min/Max Loan Amounts Fees
5.49% 24-75 months N/A $0

Why We Like It

We like Ally’s customer service and its ability to work with a wider range of credit scores than its competitors. It also has a variety of terms available, though some term lengths are limited to specific loan types.

What We Don’t Like

One of the most common complaints against Ally is related to its funding times, which some people say can extend into weeks. We also don’t like the fact that borrowers can’t view sample rates or terms until the end of the prequalification process, though there’s no hard credit check, reducing the impact of an application.

Ally Bank Customer Reviews

Many customers talk about Ally’s easy application process and user-friendly online services. Borrowers say the bank was helpful throughout the application timeline, and others say Ally’s interest rates were more competitive than those of much of the competition.

At the same time, there are an outsized number of negative Ally refinance customer reviews that say the lender is slow to pay loan funds and that it can be difficult to get documents and other information when needed.

However, like any other bank, many negative reviews come from customers who were unfamiliar with their loan paperwork, including several who were surprised to learn that part of their monthly payments covered interest. As a side note, Ally chooses not to be accredited with the Better Business Bureau.

Who Is Ally Bank Best For?

Ally is best for people who are comfortable applying for and managing their loans online, as the entire process happens digitally. That’s a huge benefit for many borrowers, but some people are uncomfortable with sending their personal information into the internet ether.

Additionally, while Ally works with a range of credit scores, its best rates and benefits are only available for well-qualified borrowers, making it more important to have your credit in order before applying.

Ally Bank Vs Capital One Auto Loans

When comparing Ally Bank to Capital One for auto financing, borrowers will find important trade-offs. Ally stands out for accessibility, as it accepts credit scores as low as 520, offers refinancing and lease-buyout options, and enables a fully online process.

However, in practice, many customers say Ally falls short on the service end. Delayed funding and less-than-stellar customer service experiences have been reported.

Capital One, on the other hand, offers a more traditional auto-loan experience with broad state availability, streamlined pre-qualification, and solid app ratings. While some users report positive, smooth financing with Capital One, it also draws consistent complaints around customer support and refinancing processes.

In short, if your credit is weaker or you’re focused on refinancing and want online convenience, Ally may be a strong fit, despite some poor review scores. If you prefer a more traditional lender, albeit one with strong digital tools and perhaps more stable service records, Capital One may edge ahead. However, choosing still requires comparison shopping to ensure you’re getting the best rate.

Ally Capital One
Lowest APR 5.99% N/A
Terms 24-75 months 36-72 months
State Availability 48 states All 50 states
Average Review Score 2.4/5 2.6/5

Is It Better to Refinance or Buy a Different Car?

Both approaches mean applying for a loan and having a hard credit check, but refinancing can be a better choice for people who don’t want the expense of a new car and loan.

Refinancing can help lower monthly payments and interest rates, but it can cost more if not approached correctly. In some cases, it’s better to buy a new car and start with a new loan on a vehicle that you can trust, especially if the current vehicle is giving you problems.

Ally Alternatives

While Ally offers competitive rates, flexible terms, and a strong online experience, it’s not the only option worth exploring. Some lenders specialize in refinancing, others provide better discounts for military members, and a few extend membership benefits that make their loans even more appealing.

Comparing alternatives is easy in our overview of the best auto refinance loan providers, and ensures you find the right fit for your budget, eligibility, and desired loan features. Additionally, personal loans and HELOCs can be powerful as alternative auto loan solutions.

 

Frequently Asked Questions

What credit score do I need for a $40,000 auto loan?

Why would Ally deny an auto loan?

Which credit score is used for auto loans?

Conclusion

Ally can be a great option if you’re looking to buy or refinance a car, but like anything else in life, it pays to do your research and shop around. While Ally’s rates are reasonable, you may find another lender with more favorable terms and better benefits. Learn about other options in our overview of the best auto loan refinancing companies.

Take the time to read customer reviews and be careful to understand how your preferred lender deals with credit scores, and review your financial situation ahead of time, and you’ll be well on your way to a new loan or vehicle refinance in no time.

About Author

Dr. Ali
After earning an MBA, Chris began writing about tech and finance as part of his work as a bank analyst and consultant. Wanting to pursue his first love in life, Chris jumped ship and turned his focus to the automotive industry, first as a freelance writer for Forbes, J.D. Power, The Drive, and U.S. News & World Report, before starting YourTestDriver.com and the America on the Road Radio Show. Chris brings more than ten years of experience in product reviews, in-depth analyses, and news, and has been recognized as a significant contributor in building the future of the automotive media field.
Dr. Ali

Chris Teague

Last Updated: October 22, 2025

Editorial Reviews

Must Reads

How Many Credit Cards Should I Have for Good Credit?

How many credit cards should I have? In short, for most people, two or three cards are ideal to generally provide enough flexibility and maintain a healthy credit profile, without becoming overly complex. Of course, like most things related to personal finance, the...

Are Balance Transfer Cards for Fair Credit Worth It?

Tired of high-interest credit card debt eating away at your budget? And you're hearing that a balance transfer card can provide a way out? Here's the catch—the offers you're hearing about generally only help those with good or excellent credit. If you have fair credit...

How do Balance Transfer Credit Cards Work?

How do balance transfer credit cards work? Are you struggling with credit card debt and looking for a way to save money on interest? If so, a balance transfer credit card might help. These cards allow you to move existing balances from one card to another, often with...

What Is Online Loan Prequalification?

You've seen it advertised. Are you now wondering: What is online loan prequalification? Online loan prequalification is a simple, no-obligation way to check if you might be eligible for a loan without affecting your credit score. It helps lenders estimate what kind of...

Can You Use a Personal Loan to Buy a Car?

Can You Use a Personal Loan to Buy a Car? You can use a personal loan to buy a car. However, it's only best in certain situations. While, personal loans aren’t the most common choice for vehicle financing, using personal loan funds to buy a car is perfectly legal, and...

How to Consolidate Credit Card Debt

Credit card debt can build up fast, and steep interest charges make it hard to catch up. When balances get out of hand, your minimum payments may barely cover the interest, keeping you in a cycle of revolving debt. The Federal Reserve made this statement in a recent...

How Does Debt Consolidation Affect Your Credit?

Debt consolidation can affect your credit in both positive and negative ways. The consolidation process itself may initially lower your credit score a few points due to a hard inquiry and the opening of a new credit account. However, it can also help improve your...

Debt Consolidation vs. Bankruptcy: Which Should I Choose?

Debt consolidation vs bankruptcy? Provided you can qualify, debt consolidation is usually the better option. The process involves combining your high-interest debts into just one simple monthly payment. Debt consolidation is an effective tool for paying down debt...

How Does Debt Consolidation Work?

Managing debt can feel overwhelming when you’re juggling high interest rates, multiple balances, and scattered due dates. Debt consolidation works by combining those debts into a single payment, usually at a lower interest rate. That can reduce the total interest...

Social Links